Gas. Cigarettes. Booze. How do PA and NJ taxes on them compare to other states?
Motorists fueling up in New Jersey this week began feeling the effect of a state gas tax increase that added 4.3 cents to the per-gallon cost. The state’s total gas tax still pales in comparison to Pennsylvania’s — the highest in the nation. But in both states, the fuel levy is just one of many fees that state governments have tacked onto everyday purchases.
Excise taxes — added to the purchase prices of items such as gasoline, alcohol, and cigarettes — are common across the country. Lawmakers often see them as more palatable than increasing sales or income taxes, which affect all residents.
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